The OpenAI Trade Isn't Microsoft Anymore. Here's Where Smart Money May Be Looking.
Yahoo Finance ·
Back in 2023, investors viewed Microsoft ( MSFT +6.03% ) as one of the best options to get direct exposure to OpenAI. That's because the tech giant announced a multiyear, multibillion-dollar investment in OpenAI that could reach $10 billion. It wasn't Microsoft's first investment in the company, and the two of them seemed close. However, the good relationship has turned a bit sour, with Microsoft releasing products that directly compete with ChatGPT. Microsoft no longer seems like the top stock to buy for direct exposure to OpenAI, but there is still a great option. Nvidia ( NVDA 1.42% ) appears to be the best choice for investors who want exposure to OpenAI before its IPO. OpenAI needs AI infrastructure to run ChatGPT and future services, and that infrastructure is only possible with Nvidia's chips. As OpenAI's revenue continues to scale, the need for more AI chips will grow.
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